Standex International Corporation · NYSE:SXI
Standex International — Q1 2024 Earnings Presentation
15 slides from Standex International's earnings presentation, Nov 3, 2023
Slide 1: First Quarter Fiscal 2024 Earnings Call Presentation
First Quarter Fiscal 2024 Earnings Call Presentation November 3, 2023
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Statements contained in this Quarterly Report that are not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminolo
Slide 3: Key Q1 FY24 Messages
KEY Q1 FY24 MESSAGES GROWTH PROFILE ▪ Organic growth of ~2.5%; led by Engraving and Electronics with double digits organic growth YOY ▪ Fast growth market sales increased ~20% YOY to $20 million in Q1 FY24. Fast growth market sales expected to reach ~$100M in FY24 ▪ Signed definitive agreement to ac
Slide 4: Sanyu Switch Company Acquisition Highlights
Sanyu Switch Company Acquisition Highlights Overview Products Transaction Summary ▪ Headquarters in Tokyo, Japan ▪ Reed relays ▪ Purchase funded by Standex’s ▪ Designs and manufactures reed ▪ Test sockets cash balance relays for test & measurement ▪ Testing systems for semi- ▪ Valuation in line with
Slide 5: Q1 FY24 Summary
Q1 FY24 SUMMARY Standex International Corporation First Quarter Ended September 30 ($ in millions) Q1 FY24 Q1 FY23 Y/Y △% Comments Net sales 184.8 180.6 2.3% Organic growth: 2.5% Acquisitions/Divestitures: (0.6%) F/X: 0.5% Adjusted operating income 29.4 27.2 8.2% Interest expense 1.3 1.2 7.5% Provis
Slide 6: Electronics
ELECTRONICS YOY Comparison Q1 FY24 Summary $ in millions Q1 FY24 Q1 FY23 % Change ▪ Revenue increased approximately $6.5 million or 8.6% YOY reflecting a 10% impact from the recent Revenue 81.7 75.2 8.6% Minntronix acquisition and a 0.4% benefit from FX, partially offset by an organic decline of 1.8
Slide 7: Engraving and Scientific
ENGRAVING YOY Comparison Q1 FY24 Summary ▪ Strong YOY organic revenue growth of 15.5%, $ in millions Q1 FY24 Q1 FY23 % Change driven by solid demand in Europe and growth in soft trim applications in Asia Revenue 40.8 35.0 16.5% ▪ Operating income increased 29.7% due to Operating Income 7.6 5.9 29.7%
Slide 8: Engineering Technologies and Specialty Solutions
ENGINEERING TECHNOLOGIES YOY Comparison Q1 FY24 Summary $ in millions Q1 FY24 Q1 FY23 % Change ▪ Solid YOY organic revenue growth of 6.1%, driven by more favorable project timing Revenue 18.2 17.0 7.2% ▪ Operating income increase reflecting pricing Operating Income 3.0 1.9 61.8% and productivity ini
Slide 9: Q1 FY24 Capitalization
Q1 FY24 CAPITALIZATION Standex International Corporation CAPITAL SPENDING AND D&A ($ in millions) 9/30/2023 6/30/2023 ▪ $4.3M of CAPEX in Q1 FY24 compared to Debt including issuance costs 148.6 173.4 $5.3M in Q1 FY23 Cash 126.8 195.7 ▪ CAPEX expected to be between $30M to $35M in FY24 Net (Cash) Deb
Slide 10: Key Takeaways
KEY TAKEAWAYS ▪ Solid Q1 FY24 results : ▪ Organic growth of ~2.5% ▪ Fast Growth market sales grew by ~20% ▪ Record adjusted gross margin of 39.5% increased 170 bps YOY ▪ Record adjusted operating margin of 15.9% increased 90 bps YOY ▪ Adjusted EPS of $1.74 increased 8.7% YOY ▪ Free Cash Flow of $12.
Slide 11: Appendix
APPENDIX 11
Slide 12: Standex Financial Framework
STANDEX FINANCIAL FRAMEWORK UPDATED LONGER-TERM TARGETS (by FY28) Sales > $1B (High-single-digit organic growth) Adj. Operating Margin * > 19% FCF Conversion ~100% GAAP Net Income ROIC ** > 15% EXPECT SALES TO EXCEED $1 BILLION WITHIN 5 YEARS * Adjusted figures exclude the impact of restructuring ch
Slide 13: Q1 FY24 Segment Snapshot
Q1 FY24 SEGMENT SNAPSHOT Segment Breakdown ($ in millions) Q1 FY24 Q1 FY23 Y/Y △% Comments Net Sales by Segment Electronics 81.7 75.2 8.6% Organic growth: -1.8%; Acquisitions: 10.0%; F/X: 0.4% Engraving 40.8 35.0 16.5% Organic growth: 15.5%; F/X: 1.0% Scientific 18.2 18.5 -1.4% Organic growth: -1.4%
Slide 14: Q1 FY24 Revenue Drivers
Q1 FY24 REVENUE DRIVERS Q1 FY24 Electronics Engraving Scientific Engineering Specialty Total YOY Change % Technologies Solutions Organic (1.8%) 15.5% (1.4%) 6.1% (1.2%) 2.5% Divestiture 0.0% 0.0% 0.0% 0.0% (24.7%) (4.8%) Acquisitions 10.0% 0.0% 0.0% 0.0% 0.0% 4.2% Currency 0.4% 1.0% 0.0% 1.1% 0.0% 0
Slide 15: Q1 FY24 GAAP to Non-GAAP Income Bridge
Q1 FY24 GAAP TO NON-GAAP INCOME BRIDGE Standex International Corporation Q1 FY24 Q1 FY23 % Change Pre-tax Net Pre-tax Net Pre-tax Net Income Tax Income EPS Income Tax Income EPS Income Income EPS Reported - GAAP $24.8 $(5.9) $18.9 $1.58 $24.1 $(5.8) $18.3 $1.53 2.9 3.1 3.3 Add: Restructuring charges
Standex International — Q1 2024 Earnings Presentation on 6ix